And this trend isn’t limited to my suburb, either. The vapor industry — the shops that sell electronic or e-cigarettes are known as vape shops — is in the middle of a boom. The Smoke-Free Alternatives Trade Association says that the e-cigarette business is expected to become an industry worth $10 billion or more by 2017.
According to a story by BloombergBusinessweek, there were more than 3,500 independent vape shops located across the country in 2013. The reason? The e-cigarette business can be a profitable one. The BloombergBusinessweek story quoted the owner of a vape shop who said that while he can mark up traditional cigarettes by 10 percent to 20 percent, he can mark up e-cigarette dispensers, nicotine cartridges and accessories by 200 percent to 400 percent.
Cynthia Cabrera, the executive director of the trade association, predicts that vape shops will only become more popular as a growing number of consumers turn to e-cigarettes instead of traditional cigarettes.
And in a written statement, Cabrera said that this is good for the economies of the communities in which these vape shops are opening.
“As the economy is rebounding, many of these businesses are helping the recovery by creating jobs through innovation,” Cabrera said in her statement. “Vapor products are fundamentally driven by technology, so there are continuous opportunites for growth and enhancement.”
Commercial real estate pros across the country have seen this surge in vape shops and e-cigarettes. During an interview earlier this year, Richard Meginnis, executive vice president and business manager with NAI FMA Realty in Lincoln, Neb., said that vape shops are popping up in several of the smaller strip malls in and around Lincoln.
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